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DaVita HealthCare Partners Inc (NYSE:DVA)
Beneish M-Score
-2.47 (As of Today)

The zones of discrimination for M-Score is as such:

An M-Score of less than -2.22 suggests that the company is not an accounting manipulator.
An M-Score of greater than -2.22 signals that the company is likely an accounting manipulator.

DaVita HealthCare Partners Inc has a M-score of -2.47 suggests that the company is not a manipulator.

DVA' s Beneish M-Score Range Over the Past 10 Years
Min: -3.52   Max: -0.76
Current: -2.47

-3.52
-0.76

During the past 13 years, the highest Beneish M-Score of DaVita HealthCare Partners Inc was -0.76. The lowest was -3.52. And the median was -2.60.


Definition

The M-score was created by Professor Messod Beneish. Instead of measuring the bankruptcy risk (Z-Score) or business trend (F-Score), M-score can be used to detect the risk of earnings manipulation. This is the original research paper on M-score.

The M-Score Variables:

The M-score of DaVita HealthCare Partners Inc for today is based on a combination of the following eight different indices:

M=-4.84+0.92 * DSRI+0.528 * GMI+0.404 * AQI+0.892 * SGI+0.115 * DEPI
=-4.84+0.92 * 1.0683+0.528 * 1.0139+0.404 * 0.9556+0.892 * 1.0835+0.115 * 1.0153
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.0579+4.679 * -0.0222-0.327 * 1.0029
=-2.47

* All numbers are in millions except for per share data and ratio. All numbers are in their own currency.

This Year (Sep15) TTM:Last Year (Sep14) TTM:
Accounts Receivable was $1,700 Mil.
Revenue was 3525.665 + 3434.618 + 3287.965 + 3328.017 = $13,576 Mil.
Gross Profit was 1024.65 + 988.542 + 925.353 + 961.556 = $3,900 Mil.
Total Current Assets was $4,738 Mil.
Total Assets was $18,895 Mil.
Property, Plant and Equipment(Net PPE) was $2,622 Mil.
Depreciation, Depletion and Amortization(DDA) was $628 Mil.
Selling, General & Admin. Expense(SGA) was $1,403 Mil.
Total Current Liabilities was $2,411 Mil.
Long-Term Debt was $9,082 Mil.
Net Income was 215.872 + 170.477 + -110.617 + 208.02 = $484 Mil.
Non Operating Income was 2.484 + -150.009 + -0.533 + 0.229 = $-148 Mil.
Cash Flow from Operations was 678.996 + 31.442 + 410.089 + -69.991 = $1,051 Mil.
Accounts Receivable was $1,469 Mil.
Revenue was 3251.824 + 3172.489 + 3042.776 + 3063.209 = $12,530 Mil.
Gross Profit was 925.29 + 925.951 + 863.004 + 935.377 = $3,650 Mil.
Total Current Assets was $4,178 Mil.
Total Assets was $18,101 Mil.
Property, Plant and Equipment(Net PPE) was $2,359 Mil.
Depreciation, Depletion and Amortization(DDA) was $576 Mil.
Selling, General & Admin. Expense(SGA) was $1,224 Mil.
Total Current Liabilities was $2,598 Mil.
Long-Term Debt was $8,381 Mil.



1. DSRI = Days Sales in Receivables Index

Measured as the ratio of days’ sales in receivables in year t to year t-1.

A large increase in DSR could be indicative of revenue inflation.

DSRI=(Receivables_t / Revenue_t) / (Receivables_t-1 / Revenue_t-1)
=(1699.892 / 13576.265) / (1468.563 / 12530.298)
=0.12521058 / 0.11720096
=1.0683

2. GMI = Gross Margin Index

Measured as the ratio of gross margin in year t-1 to gross margin in year t.

Gross margin has deteriorated when this index is above 1. A firm with poorer prospects is more likely to manipulate earnings.

GMI=GrossMargin_t-1 / GrossMargin_t
=(GrossProfit_t-1 / Revenue_t-1) / (GrossProfit_t / Revenue_t)
=(988.542 / 12530.298) / (1024.65 / 13576.265)
=0.29126378 / 0.28727349
=1.0139

3. AQI = Asset Quality Index

AQI is the ratio of asset quality in year t to year t-1.

Asset quality is measured as the ratio of non-current assets other than plant, property and equipment to total assets.

AQI=(1 - (CurrentAssets_t + PPE_t) / TotalAssets_t) / (1 - (CurrentAssets_t-1 + PPE_t-1) / TotalAssets_t-1)
=(1 - (4737.886 + 2621.918) / 18894.828) / (1 - (4178.435 + 2359.203) / 18101.416)
=0.61048579 / 0.63883279
=0.9556

4. SGI = Sales Growth Index

Ratio of sales in year t to sales in year t-1.

Sales growth is not itself a measure of manipulation. However, growth companies are likely to find themselves under pressure to manipulate in order to keep up appearances.

SGI=Sales_t / Sales_t-1
=Revenue_t / Revenue_t-1
=13576.265 / 12530.298
=1.0835

5. DEPI = Depreciation Index

Measured as the ratio of the rate of depreciation in year t-1 to the corresponding rate in year t.

DEPI greater than 1 indicates that assets are being depreciated at a slower rate. This suggests that the firm might be revising useful asset life assumptions upwards, or adopting a new method that is income friendly.

DEPI=(Depreciation_t-1 / (Depreciaton_t-1 + PPE_t-1)) / (Depreciation_t / (Depreciaton_t + PPE_t))
=(576.067 / (576.067 + 2359.203)) / (628.294 / (628.294 + 2621.918))
=0.1962569 / 0.19330862
=1.0153

6. SGAI = Sales, General and Administrative expenses Index

The ratio of SGA expenses in year t relative to year t-1.

SGA expenses index > 1 means that the company is becoming less efficient in generate sales.

SGAI=(SGA_t / Sales_t) / (SGA_t-1 /Sales_t-1)
=(1403.305 / 13576.265) / (1224.346 / 12530.298)
=0.10336459 / 0.09771084
=1.0579

7. LVGI = Leverage Index

The ratio of total debt to total assets in year t relative to yeat t-1.

An LVGI > 1 indicates an increase$sgai= in leverage

LVGI=((LTD_t + CurrentLiabilities_t) / TotalAssets_t) / ((LTD_t-1 + CurrentLiabilities_t-1) / TotalAssets_t-1)
=((9082.096 + 2410.554) / 18894.828) / ((8380.903 + 2597.631) / 18101.416)
=0.60824317 / 0.60650139
=1.0029

8. TATA = Total Accruals to Total Assets

Total accruals calculated as the change in working capital accounts other than cash less depreciation.

TATA=(IncomefromContinuingOperations_t - CashFlowsfromOperations_t) / TotalAssets_t
=(NetIncome_t - NonOperatingIncome_t - CashFlowsfromOperations_t) / TotalAssets_t
=(483.752 - -147.829 - 1050.536) / 18894.828
=-0.0222

An M-Score of less than -2.22 suggests that the company will not be a manipulator. An M-Score of greater than -2.22 signals that the company is likely to be a manipulator.

DaVita HealthCare Partners Inc has a M-score of -2.47 suggests that the company will not be a manipulator.


Related Terms

Altman Z-Score, Piotroski F-Score, Accounts Receivable, Revenue, Gross Profit, Total Current Assets, Total Assets, Property, Plant and Equipment, Depreciation, Depletion and Amortization, Selling, General & Admin. Expense, Total Current Liabilities, Long-Term Debt, Net Income, Non Operating Income, Cash Flow from Operations


Historical Data

* All numbers are in millions except for per share data and ratio. All numbers are in their own currency.

DaVita HealthCare Partners Inc Annual Data

Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14
DSRI 1.35240.66560.92271.07790.95280.93161.05270.980.72560.9446
GMI 1.0291.03370.96031.03451.00941.0570.92430.98031.0491.0551
AQI 1.25910.98160.95770.97230.97360.96961.09211.20850.95170.9663
SGI 1.36591.64121.07861.07521.07931.01811.08241.21611.4371.0876
DEPI 1.26250.81270.99160.9960.99891.02921.06071.01340.79851.0063
SGAI 1.06041.05641.00420.75280.9691.05661.10631.06870.920.9859
LVGI 1.15070.9230.9210.96320.91551.04920.98631.03010.96020.9412
TATA -0.0418-0.00060.0041-0.0346-0.0328-0.0447-0.0792-0.0348-0.0669-0.0357
M-score -1.93-2.21-2.48-2.44-2.58-2.74-2.74-2.41-2.65-2.58

DaVita HealthCare Partners Inc Quarterly Data

Jun13Sep13Dec13Mar14Jun14Sep14Dec14Mar15Jun15Sep15
DSRI 0.83020.75060.72560.7770.88460.93310.94460.99930.99251.0683
GMI 1.05761.06481.0491.05391.0411.04451.05511.03691.03441.0139
AQI 1.1611.07130.95170.95670.92940.94320.96630.95540.95660.9556
SGI 1.39261.49871.4371.30671.21261.12091.08761.08881.08341.0835
DEPI 0.85490.79980.79850.86650.93230.99811.00631.01391.01581.0153
SGAI 0.93390.94040.920.9290.97150.96540.98591.03021.04991.0579
LVGI 1.04410.98320.96020.94650.96630.95970.94120.98480.98371.0029
TATA -0.04-0.0614-0.0669-0.0593-0.0499-0.0529-0.0298-0.0445-0.0325-0.0222
M-score -2.40-2.50-2.65-2.66-2.63-2.66-2.55-2.61-2.57-2.47
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